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hunt_terrie
New Member

I do odd jobs, house cleaning and baby sitting. No one client paid $600 or more. I DO NOT WANT TO UPGRADE OR FILE AS SELF EMPLOYED. HOW DO I GET PAST THIS?

 
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Hal_Al
Level 15

I do odd jobs, house cleaning and baby sitting. No one client paid $600 or more. I DO NOT WANT TO UPGRADE OR FILE AS SELF EMPLOYED. HOW DO I GET PAST THIS?

If you baby sat in your own home, that income is self employment income. If you baby sat in the client's home, you could be considered a "household employee". The house cleaning work could be classified either way, depending on the details (see the other answer).

The “Nanny Tax” specifically refers to the social security & medicare tax ("FICA") paid on a household employee’s (nanny, maid, baby sitter, gardener etc.) wages. The most proper way to report your income would have been for your employer to have given you a W-2. In practice, this is seldom done. That having not been done, the 2nd best choice is for you to report it as self employment income on schedule C, paying your own social security tax ( “self employment” tax) on schedule SE.

If the Household employee wages  were from more than one employer and no single employer paid your more than $2100, you may be able to avoid the self employment tax. But, you will also not get credit for these wages with the Social Security Administration, for future benefits.

In TurboTax, enter at:

 Federal Taxes

Click on Wages and Income

Scroll down to Less Common Income

On Miscellaneous Income, 1099-A, 1099-C click the start button

On the next screen click the start button on Other Income not already reported on Form W-2 or Form 1099

Answer Yes on the next screen and continue the interview until it completes.

 

TurboTax puts the amount on line 1 (wages) of form 1040 (line 7 prior to 2018) with the notation “HSH”. It is considered earned income.

Be advised, the IRS frowns on claiming the Earned Income Credit, for household employee wages without paying FICA. Your audit risk goes up by doing so.


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3 Replies
Hal_Al
Level 15

I do odd jobs, house cleaning and baby sitting. No one client paid $600 or more. I DO NOT WANT TO UPGRADE OR FILE AS SELF EMPLOYED. HOW DO I GET PAST THIS?

If you baby sat in your own home, that income is self employment income. If you baby sat in the client's home, you could be considered a "household employee". The house cleaning work could be classified either way, depending on the details (see the other answer).

The “Nanny Tax” specifically refers to the social security & medicare tax ("FICA") paid on a household employee’s (nanny, maid, baby sitter, gardener etc.) wages. The most proper way to report your income would have been for your employer to have given you a W-2. In practice, this is seldom done. That having not been done, the 2nd best choice is for you to report it as self employment income on schedule C, paying your own social security tax ( “self employment” tax) on schedule SE.

If the Household employee wages  were from more than one employer and no single employer paid your more than $2100, you may be able to avoid the self employment tax. But, you will also not get credit for these wages with the Social Security Administration, for future benefits.

In TurboTax, enter at:

 Federal Taxes

Click on Wages and Income

Scroll down to Less Common Income

On Miscellaneous Income, 1099-A, 1099-C click the start button

On the next screen click the start button on Other Income not already reported on Form W-2 or Form 1099

Answer Yes on the next screen and continue the interview until it completes.

 

TurboTax puts the amount on line 1 (wages) of form 1040 (line 7 prior to 2018) with the notation “HSH”. It is considered earned income.

Be advised, the IRS frowns on claiming the Earned Income Credit, for household employee wages without paying FICA. Your audit risk goes up by doing so.


macuser_22
Level 15

I do odd jobs, house cleaning and baby sitting. No one client paid $600 or more. I DO NOT WANT TO UPGRADE OR FILE AS SELF EMPLOYED. HOW DO I GET PAST THIS?

It does not matter if they paid $600 or more.  You must report all income as self-employed income and pay Self-employment tax on any amount over $400 for the year for "odd jobs".  

You "might" be able to report some income if the baby sitting and house cleaning was done in the clients home, using the clients supplies and under the direction of the client as a household employee income without a W-2, but from your description of several clients, it is probably all self-employed income.

You might be able to use the Freedom Edition for incomes under $33,000 and supports all states and most forms including the self-employment.

The Freedom Edition is part of the IRS Free File alliance and is totally separate from TurboTax website.

https://ttlc.intuit.com/replies/3301359

How do I switch to TurboTax Freedom Edition?
https://ttlc.intuit.com/replies/3491786

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
sugar2140
New Member

I do odd jobs, house cleaning and baby sitting. No one client paid $600 or more. I DO NOT WANT TO UPGRADE OR FILE AS SELF EMPLOYED. HOW DO I GET PAST THIS?

I done odd jobs in 2020 and did not claim 

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